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Highlights

  • ATS’ Q1 2025 revenue fell 7.9%, driven by weaker performance in Transportation and Food & Beverage sectors.
  • Net income dropped 26.0% in Q1 2025, reflecting lower revenue and higher finance costs.
  • ATS completed the acquisition of Heidolph Instruments and expects 33-36% order backlog conversion in Q2 2025.

ATS Corporation (TSX: ATS) provides automation systems. It specializes in tailored automated manufacturing and testing systems for its clients. It has a market cap of CAD 4.09 billion.

In Q1 2025, the company reported total revenues of CAD 694.2 million, marking a decline of 7.9% compared to CAD 753.6 million in prior corresponding period. The drop in revenue was primarily attributed to weaker performance in the Transportation and Food & Beverage sectors, which had lower contributions during the quarter.

Earnings from operations also decreased by 14.6%, from CAD 79.0 million in Q1 2024 to CAD 67.5 million in Q1 2025, largely due to the reduced revenue. Income before income taxes saw a significant drop of 22.7%, falling to CAD 48.0 million from CAD 62.1 million in the previous year. This decline was attributed to lower operating income and higher net finance costs. As a result, net income fell by 26.0%, from CAD 47.7 million to CAD 35.3 million.

Recent Business Update

Company Outlook

ATS’ management anticipates that, in Q2FY25, the conversion of order backlog into revenue will fall within the range of 33% to 36%.

Top 10 Shareholders:

The top 10 shareholders of ATS own about 49.42% of the total shares. The largest stakes are held by Mason Capital Management LLC, with around 15.23%, and Capital International Investors, with around 7.00%.

Stock Information

Over the past week, the stock has declined by approximately 1.62%, while showing a 2.45% increase over the last month. As of November 4, 2024, the stock closed at CAD 41.78.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 4, 2024. The reference data in this report has been partly sourced from EODHD/Others.